The usual resistance microphone in use today comprises a cell containing granulated carbon particles which are variably pressed together by acoustic forces. In producing inexpensive toy telephone systems it has been found that the aforementioned type of microphone represents an inordinate proportion of the cost of the system. Consequently, the need exists for a simple and inexpensive microphone for such systems. In the early prior art, carbon pencil type microphones were utilized in conjunction with a sounding board such as that demonstrated by Hughes in 1878 as illustrated at page 7 in the Bell Telephone System publication "The Carbon Microphone" by F. S. Goucher. That type of carbon microphone was abandoned primarily because of the need for a modern sounding board, in favor of the modern granulated carbon microphone. I have found that the pencil microphone has the capability to be produced more easily and less expensively than the granulated carbon microphone, and have undertaken to analyze how the pencil type microphone could be produced in a highly inexpensive form for use in a toy telephone.